Information duty under URDG758

With the introduction of Uniform Rules for Documentary Guarantee or URDG 758, the rules for Documentary Guarantee seem to be popular again. It can be imagined from the increasing number of questions that have popped up in recent days. Documentary Guarantee Forum is an effort to develop a platform to discuss these questions.
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Joined: Thu Oct 26, 2017 11:51 am
First Name: Nesarul
Last Name: Hoque
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Information duty under URDG758

Post by Nesar » Sun Mar 04, 2018 9:04 am

Dear all,
URDG 758 impose so many information duty to the guarantor in article 16. 23 etc
Do you think it’s effective, what if the guarantor didn’t comply with the article, can the counter guarantor refuse to honour its obligation?
Best regards

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Re: Information duty under URDG758

Post by picant » Sun Mar 18, 2018 3:26 am

Hi Pal,

counter guarantor banks REQUEST other banks to ISSUE a guarantee, o/b of a principal.
I think that the guarantee issuer would bind the counter guarantor in such a way that it
would be always liable for any requests or actions. Once I needed help by a bank and I had to
sign a lot of documents containing any sort of terms and conditions.
We received two or three extend or pay requests too. All lasted 3 years.

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